Important Reminder for FSA Account Holders: Spend Funds Before June 30 Deadline
With June 30 rapidly approaching, individuals whose healthcare benefits are tied to flexible spending accounts (FSAs) are facing a critical deadline. FSA Store, the premier marketplace for FSA-eligible products and services, is advising government employees and others who rely on these accounts to check their balances and ensure they utilize their funds before they are lost.
Understanding FSAs
Flexible spending accounts provide an excellent financial tool for managing healthcare expenses. By allowing employees to allocate pre-tax dollars towards medical costs, FSAs can significantly lower a person's taxable income and overall healthcare costs. Despite these benefits, many account holders find themselves forfeiting unused funds due to lack of awareness about deadlines or eligible expenses.
Rachel Rouleau, chief compliance officer for FSA Store's parent company, Health-E Commerce, notes, "Many individuals forfeit FSA funds because they are unaware of how to maximize their accounts and the importance of timely spending. Our goal is to educate them on utilizing these funds effectively, especially as the June 30 deadline looms."
Three Key Steps to Avoid Losing Funds
Here are three actionable steps recommended for individuals holding FSAs to help them prevent losing their funds:
1. Check Your Deadline: It's critical to remember that not all FSA plans operate on the same schedule. Most private sector plans follow a December 31 deadline, while many government and state employee plans set their deadline for June 30. After this date, any remaining balance could be forfeited unless a grace period or carryover option is in place. A grace period permits spending a few additional months, while a carryover allows funds up to $640 to be transferred to the following year.
2. Review Your FSA Balance: Research shows that average contributions to FSAs hover around $1,300, with nearly half of account holders losing some of their money—averaging over $400 per person annually. FSA Store provides tools for tracking your balance and understanding deadlines with ease, so users can spend wisely rather than risk losing funds.
3. Plan Healthcare Spending: The array of eligible expenses for FSA funds has significantly expanded, with various products and services now covered. From over-the-counter medications to telehealth services, there are many ways to make the most of your account. Some commonly eligible items include:
- Over-the-counter medications such as pain relief and allergy treatments
- Sunscreen products and skincare items
- First-aid kits and drug-free pain relief implements
- Advanced health devices like diagnostic monitors and migraine relief masks
- Telehealth services for consultations across multiple specialties, including mental health and women’s health.
To aid consumers in strategizing their FSA spending, FSA Store has compiled a 'Deadline Spending Guide' and provides an eligibility checklist to help navigate eligible purchases easily. Additionally, consumers can find product bundles and filter by price according to their remaining funds, which helps in effective budgeting.
As the landscape of healthcare expenses becomes increasingly complex, FSA Store's commitment to guiding consumers through the nuances of their accounts is vital. With deep educational resources and dedicated shopping experiences, the aim is to empower individuals to take control of their healthcare finances effectively.
About Health-E Commerce
Health-E Commerce is recognized as a frontrunner in the e-commerce realm for pre-tax health and wellness benefits, serving millions of consumers enrolled in health accounts. Apart from FSA Store, the company also oversees HSA Store and Caring Mill®—a private-label health product line that donates part of proceeds to the Children's Health Fund. Through informative support and the growth of eligible product offerings, Health-E Commerce is transforming how consumers manage their health expenses.
As the deadline approaches, individuals are encouraged to act swiftly—because when it comes to FSAs, use it or lose it certainly applies!
Understanding FSAs
Flexible spending accounts provide an excellent financial tool for managing healthcare expenses. By allowing employees to allocate pre-tax dollars towards medical costs, FSAs can significantly lower a person's taxable income and overall healthcare costs. Despite these benefits, many account holders find themselves forfeiting unused funds due to lack of awareness about deadlines or eligible expenses.
Rachel Rouleau, chief compliance officer for FSA Store's parent company, Health-E Commerce, notes, "Many individuals forfeit FSA funds because they are unaware of how to maximize their accounts and the importance of timely spending. Our goal is to educate them on utilizing these funds effectively, especially as the June 30 deadline looms."
Three Key Steps to Avoid Losing Funds
Here are three actionable steps recommended for individuals holding FSAs to help them prevent losing their funds:
1. Check Your Deadline: It's critical to remember that not all FSA plans operate on the same schedule. Most private sector plans follow a December 31 deadline, while many government and state employee plans set their deadline for June 30. After this date, any remaining balance could be forfeited unless a grace period or carryover option is in place. A grace period permits spending a few additional months, while a carryover allows funds up to $640 to be transferred to the following year.
2. Review Your FSA Balance: Research shows that average contributions to FSAs hover around $1,300, with nearly half of account holders losing some of their money—averaging over $400 per person annually. FSA Store provides tools for tracking your balance and understanding deadlines with ease, so users can spend wisely rather than risk losing funds.
3. Plan Healthcare Spending: The array of eligible expenses for FSA funds has significantly expanded, with various products and services now covered. From over-the-counter medications to telehealth services, there are many ways to make the most of your account. Some commonly eligible items include:
- Over-the-counter medications such as pain relief and allergy treatments
- Sunscreen products and skincare items
- First-aid kits and drug-free pain relief implements
- Advanced health devices like diagnostic monitors and migraine relief masks
- Telehealth services for consultations across multiple specialties, including mental health and women’s health.
To aid consumers in strategizing their FSA spending, FSA Store has compiled a 'Deadline Spending Guide' and provides an eligibility checklist to help navigate eligible purchases easily. Additionally, consumers can find product bundles and filter by price according to their remaining funds, which helps in effective budgeting.
As the landscape of healthcare expenses becomes increasingly complex, FSA Store's commitment to guiding consumers through the nuances of their accounts is vital. With deep educational resources and dedicated shopping experiences, the aim is to empower individuals to take control of their healthcare finances effectively.
About Health-E Commerce
Health-E Commerce is recognized as a frontrunner in the e-commerce realm for pre-tax health and wellness benefits, serving millions of consumers enrolled in health accounts. Apart from FSA Store, the company also oversees HSA Store and Caring Mill®—a private-label health product line that donates part of proceeds to the Children's Health Fund. Through informative support and the growth of eligible product offerings, Health-E Commerce is transforming how consumers manage their health expenses.
As the deadline approaches, individuals are encouraged to act swiftly—because when it comes to FSAs, use it or lose it certainly applies!
Topics Consumer Products & Retail）
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